Marico Q1 FY27 Results Analysis: PAT Surges 25%, Both Segments Grow Over 20%

Marico Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 3,957.00 Cr (+22.85% YoY) and PAT growth of +25.00% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Marico delivered strong Q1 FY27 results with 22.85% revenue growth, 25% PAT growth, and EBITDA margin expansion to 20.70%. The India and International segments both grew over 20% YoY, with International benefiting from the Skinetiq acquisition. The company effectively managed raw material costs, keeping total raw material cost ratio flat despite higher copra and CPO prices.

Key Investment Insights

Key Positives

• Revenue grew 22.85% YoY to Rs.3,957 cr, the strongest Q1 growth in recent years.
• EBITDA grew 25.04% YoY to Rs.819 cr, with margin expanding 36 bps to 20.70%.
• PAT attributable to owners grew 25% YoY to Rs.630 cr.
• Both India and International segments grew over 20% YoY (India +20.94%, International +29.27%).
• Total raw material cost as a percentage of revenue was flat at 53.37% vs 53.71% YoY, effectively managing input cost pressures.

Risk Factors

• International EBIT margin contracted 192 bps YoY to 26.94%, likely due to integration costs and dilutive effect of Skinetiq acquisition.
• Finance cost doubled to Rs.21 cr from Rs.10 cr, reflecting higher borrowings for working capital and acquisition.
• The Skinetiq acquisition results are not comparable with prior periods, and its contribution is not separately disclosed, clouding organic growth analysis.